Leading developer and supplier of carbon credits across the globe - EKI Energy Services Ltd. today restated that India will not witness any ban for the export of its surplus carbon credits. The announcement comes in the backdrop of a clarification by the country's Minister for Power and New & Renewable Energy - Shri RK Singh.
The export of carbon credits from India to International markets ensures a strong influx of climate finance to India, which is used for climate action initiatives across the country for carbon reduction projects and interventions. This, along with all the other amendments proposed to the EC Act 2022 that are expected to get final approvals by Rajya Sabha [Upper House of Indian Parliament] & President of India by the end of this year, will enable a faster progression for India's journey to become net-zero by 2070 as committed at COP26.
Speaking to media on the sidelines of the curtain raiser event for the Fifth Assembly of the International Solar Alliance, the Minister said, "We are not looking to ban carbon credits. The ban will only be up to the extent required for our own NDCs [Nationally Determined Contributions]". He added, "The carbon credits that go to make up our own NDCs we would want to keep for ourselves and anything beyond that can be sold anywhere in the world. Other countries can look forward to huge quantities of carbon credits being available in India".
Mr. Manish Dabkara, CMD & CEO of EKI Energy Services Ltd. said, "We are happy to hear that this matter finally has greater clarity by the Minister himself. Carbon credits and its trade is an imperative and integral part of any climate positive plans given its capabilities to control GHG emissions. This clarification will enable the entire industry ecosystem to continue its efforts towards strengthening the country's domestic market with a steady supply of credits that will further accelerate India's journey to a carbon neutral future and pave the way for the market to unlock new potentials and unleash a new era of environmental activism in India".
The development reiterates the clarification that EKI Energy Services Ltd. had issued in August 2022, confirming that there will be zero restrictions on the sale of carbon credits developed in India to International global voluntary markets. As for Article 6 carbon credits, greater clarity is expected post the COP27 meeting in the coming month.
The country's carbon market is all set for a revolution. The Energy Conservation [EC] Act 2022 will bring fair play and increased transparency, enabling all stakeholders with equal opportunities. With the implementation of the National ETS, the domestic carbon credits market will enable the development higher quality sources of carbon credits, benefitting both buyers and sellers and ultimately, supporting progress toward a low-carbon future.